THE U.S. trade deficit unexpectedly widened in September as exports hit a five-month low, a sign that slowing global demand could undercut economic growth in the fourth quarter.

    The U.S. Commerce Department said Tuesday the trade gap increased 7.6 percent to US$43.03 billion, ending four straight months in which the deficit had narrowed.

    “We expect a stronger dollar and weaker growth abroad, most notably in Europe, will take a greater toll on the trade balance and overall growth in the economy,” said Diane Swonk, chief economist at Mesirow Financial in Chicago.

    September’s shortfall was bigger than the US$38.1 billion gap the government had assumed in its estimate of third-quarter GDP last week, when it said the economy expanded at a 3.5 percent annual rate, with trade adding 1.3 percentage points.

    Economists, who had expected a US$40.00 billion trade gap in September, said the wider deficit could cut as much as half a percentage point off that growth estimate. That would come on top of a reduction of about two-tenths of a point due to weak construction spending data released Monday, they said.

    The government will publish revisions to third-quarter GDP later this month.

    In another report, the Commerce Department said orders for factory goods fell for a second straight month in September. Relatively firm domestic demand, however, is expected to keep U.S. factories humming.

    Exports in September fell 1.5 percent to US$195.59 billion, the lowest level since April, a sign that weakening demand in key markets was starting to weigh. (SD-Agencies)